Page 221 - SAIT Compendium 2016 Volume1

s 27 INCOME TAX ACT 58 OF 1962 s 28
operative Societies Act, 1939, shall be deemed to include the members of any agricultural co-operative which itself is a member of such company.
[De nition of ‘storage building’ substituted by s. 19 (1) (g) of Act 104 of 1980.]
[Sub-s. (9) added by s. 17 (1) of Act 113 of 1977.]
28 Taxation of short-term insurance business
[Heading substituted by s. 61 (1) (a) of Act 22 of 2012 – date of commencement: 1 January 2013; this substitution applies in respect of years of assessment commencing on or after that date.]
(1) For the purposes of this section—
‘premium’ means a premium as de ned in the Short- term Insurance Act;
‘Short-term Insurance Act’ . . .
[De nition of ‘Short-term Insurance Act’ deleted by s. 76 (1) (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘short-term insurance business’ means short-term insurance business as de ned in the Short-term Insurance Act.
[NB: The de nition of ‘short-term insurance business’ has been substituted by s. 52 (1) (a) of Taxation Laws Amendment Act, 2015, a provision that is to come into operation on the date on which an insurer quali es as a micro-insurer as de ned in the Insurance Act, 2016, in terms of that Act, and is to apply to years of assessment ending on or after that date. See Pendlex below.]
‘short-term insurer’ means a short-term insurer as de ned in the Short-term Insurance Act;
[NB: The de nition of ‘short-term insurer’ has been substituted by s. 52 (1) (b) of Taxation Laws Amendment Act, 2015, a provision that is to come into operation on the date on which an insurer quali es as a micro-insurer as de ned in the Insurance Act, 2016, in terms of that Act, and is to apply to years of assessment ending on or after that date. See Pendlex below.]
‘short-term policy’ means a short-term policy as de ned in the Short-term Insurance Act;
[De nition of ‘short-term policy’ substituted by s. 76 (1) (b) of Act 31 of 2013 – substitution deemed to have come into operation on 1 January 2013 and applies in respect of years of assessment commencing on or after that date.]
[NB: The de nition of ‘short-term policy’ has been substituted by s. 52 (1) (c) of Taxation Laws Amendment Act, 2015, a provision that is to come into operation on the date on which an insurer quali es as a micro-insurer as de ned in the Insurance Act, 2016, in terms of that Act, and is to apply to years of assessment ending on or after that date. See Pendlex below.]
[Sub-s. (1) substituted by s. 21 (1) (a) of Act 88 of 1971, amended by s. 19 (1) of Act 91 of 1982, by s. 17 (a) of Act 65 of 1986, by s. 23 (1) of Act 90 of 1988 and by s. 13 (1) (a) of Act 70 of 1989, substituted by s. 25 (1) (a) of Act 101 of 1990, amended by s. 29 (a) of Act 129 of 1991, by
s. 24 (a) of Act 113 of 1993 and by s. 19 (1) (b) of Act 21 of 1994, deleted by s. 33 (a) of Act 30 of 2000 and inserted by s. 61 (1) (b) of Act 22 of 2012 – date of commencement: 1 January 2013; this substitution applies in respect of years of assessment commencing on or after that date.]
(1A) . . .
[Sub-s. (1A) inserted by s. 17 (b) of Act 65 of 1986, substituted by s. 29 (b) of Act 129 of 1991, deleted by s. 33 (a) of Act 30 of 2000 and omitted by s. 61 (1) (b) of Act 22 of 2012.]
(1B) . . .
[Sub-s. (1B) inserted by s. 13 (1) (b) of Act 70 of 1989, amended by s. 25 (1) (b) of Act 101 of 1990, deleted by s. 33 (a) of Act 30 of 2000 and omitted by s. 61 (1) (b) of Act 22 of 2012.]
(1C) . . .
[Sub-s. (1C) inserted by s. 24 (b) of Act 113 of 1993, deleted by s. 33 (a) of Act 30 of 2000 and omitted by s. 61 (1) (b) of Act 22 of 2012.]
(2) For the purpose of determining the taxable income derived during a year of assessment by any short-term insurer that is a resident from carrying on short-term insurance business—
(a) a premium received by or accrued to that person in respect of a short-term policy issued by that short- term insurer prior to the date of commencement of the risk cover under that policy shall be deemed to have been received by or accrued to that short-term insurer on the date of commencement of the risk cover under that policy;
(b) an amount of expenditure actually incurred by that short-term insurer in respect of a refund of a premium in respect of a short-term policy issued by that short- term insurer may only be deducted in terms of section 11 (a) to the extent that the amount of the premium was included in the gross income of that short-term insurer;
(c) an amount of expenditure payable by that short-term insurer in respect of any claim in terms of a short- term policy—
(i) may be deducted in terms of section 11 (a) to the extent that the amount has been paid by that short-term insurer; and
(ii) to the extent that the amount has been paid by the short-term insurer, sections 23 (c) and 23H shall not apply to that expenditure;
(d) section 23H shall not apply to expenditure (other than expenditure contemplated in paragraph (c)) incurred in respect of—
(i) a short-term policy issued by that short-term insurer; or
(ii) a policy of reinsurance if that short-term insurer is the holder of that policy; and
(e) an amount recoverable by that short-term insurer in respect of a claim incurred under a short-term policy issued by that short-term insurer shall only be included
Pendlex (to come into operation on the date on which an insurer quali es as a micro-insurer as de ned in the Insurance Act, 2016, in terms of that Act)
‘short-term insurance business’ means short- term insurance business as de ned in the Short-term Insurance Act and micro-insurance business as de ned in section 1 of the Insurance Act;
Pendlex (to come into operation on the date on which an insurer quali es as a micro-insurer as de ned in the Insurance Act, 2016, in terms of that Act)
‘short-term insurer’ means a short-term insurer as de ned in the Short-term Insurance Act and a micro- insurer as de ned in section 1 of the Insurance Act;
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Pendlex (to come into operation on the date on which an insurer quali es as a micro-insurer as de ned in the Insurance Act, 2016, in terms of that Act)
‘short-term policy’ means a short-term policy as de ned in the Short-term Insurance Act and a policy issued by a micro-insurer as de ned in section 1 of the Insurance Act;
INCOME TAX ACT – SECTIONS